SA’s bond market was holding up at lunchtime although data showed the country’s economy fared poorly in the fourth quarter. Gross domestic product (GDP) contracted 0.3% in the fourth quarter, according to Statistics SA, from 0.4% growth in the third quarter. Mining and manufacturing‚ which together contribute about an eighth of GDP‚ were among the main factors. The economy grew 0.3% in 2016. "On balance, the outcome reflected weaker commodity prices, the impact of higher interest rates, protracted drought, as well as the political climate that affected investor sentiment," said ETM Analytics economist Manisha Morar. The yield on the benchmark R186 bond remained broadly steady 8.66%, from 8.67% on Monday. The rand, which usually plays a key part in the bond market, was also trading in a stable range
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